Deutsche Bank’s Pan-European Retail Banking Strategy

Topics: Bank, Banking, Decision making Pages: 11 (2682 words) Published: January 25, 2013
BUSI 3312

Group Case Study– BUSI 3312

“Deutsche Bank’s Pan-European Retail Banking Strategy”

In partial fulfillment of the requirements for BUSI 3312

August 7th, 2012

Table of Contents

Heading Page

Problem Statement 2

Data Analysis 3

SWOT Analysis 3

Strengths 4

Weaknesses 4
Opportunities 5

Threats 5

Key Decision Criteria6

Alternatives 8

Alternatives Analysis 9
Alternative #1 9

Alternative #2 10

Alternative #3 11

Recommendations 12

Action and Implementation Plan 13

*Note* All information from this case was either taken from the Case, text, or assumed. Group Case Study– BUSI 3312

“Deutsche Bank’s Pan-European Retail Banking Strategy”

Problem Statement

Deutsche Bank has some key decisions to make in reaching its goals of expanding throughout Europe. Once the organization chooses its method of expanding it then has to decide how they will implement its decision so that it can ensure success in the Pan-European market.

If Deutsche Bank decides to merge with Dresdner Bank it needs to find a way for the managements of the two organizations will need to find a way to work together. If the Bank decides to move forward with retail banking strategy it will need to devise a plan on how to expand throughout Europe.

Should Deutsche Bank retry to merge with Dresdner Bank or should it keep working towards its Pan-European retail banking strategy? Deciding which option to take is the main problem that the management of Deutsche Bank if it wishes to realize its goals of expanding throughout Europe.

Data Analysis

In March 2000 Deutsche Bank was the largest bank in Germany. At this time the bank was looking at ways of expanding throughout Europe. The organizations had a number of decisions to make in order for it to realize this goal. The first method teat Deutsch bank was considering to move towards this goal was to merge with the country’s third largest bank Dresdner Bank. This merger would move the bank towards investment banking and away from retail banking. Moving in this direction was preferred by most annalists as retail banking in Germany was a low-margined business as retail banking was high-margined.

As stated in the case the management of Deutsche Bank and Dresdner Bank could not come to mutual agreements on the direction the merged bank should go, so the merger eventually failed. Due to not moving forward with the merger Deutsch Bank rethought their retail banking strategy and decided to direct all resources and efforts towards Bank 24, Deutsche Bank’s retail division.

Deutsche Bank realized that there was a growing number of the European population switching their saving from deposit accounts into equities and investment funds in the planning for their retirement. Bank 24’s retail expertise could be used to satisfy these potential customers. With the emergence of the Euro cross country banking should become easier making these potential customers in reach of Deutsche Bank. Deutsche Bank understood that the growth of the organization through out Europe would be very expensive and if it were to be successful it would take total commitment from the entire Deutsche organization. SWOT Analysis

To give a better picture of the decisions that need to be made and the solutions to problems that Deutsche Bank faces we will conduct a SWOT analysis. By analysing the...
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